Legal sports betting is continuing to bolster the profits of the U.S. commercial gaming industry.
The U.S. commercial gaming industry saw gross gaming revenue in Q3 2023 reach $16.2 billion — a 6.7% increase year-over-year, according to the American Gaming Association. The results in Q3 marked the 11th consecutive quarter of year-over-year growth for the industry.
The emergence of sports betting nationwide is attributing to the rapid and consistent growth. The market helped propel U.S. commercial gaming to its high-grossing third quarter ever.
Legal sports betting generated $2.23 billion in revenue for the U.S. commercial gaming industry in Q3 2023 – a 27.7% uptick compared to the same period last year. The growth in sports betting revenue was attributed to the authorization of wagering in new markets, including Maryland, Massachusetts, Nebraska, and Ohio. Those states added $358.7 million in revenue in Q3. In the first nine months of FY2023, sports betting generated $7.1 billion in revenue.
Other sectors in the U.S. commercial gaming industry are also reporting favorable growth.
The U.S. commercial gaming industry continued to be led by slot gaming in Q3 2023. Slot revenue reached $8.8 billion during the quarter, which was only up 1.7% compared to Q3 2022.
Table gaming saw revenue reach $2.6 billion in revenue in Q3 2023 — a 3.8% increase year-over-year — while iGaming revenue closed at $1.5 billion, up 26% compared to Q3 2022.
The growing U.S. commercial gaming industry is paying dividends for state and local governments. In Q3 2023, gaming operators across America paid roughly $3.44 billion in taxes to state and local governments — a 5.2% increase year-over-year. The U.S. commercial gaming industry has paid state and local governments around $10.69 billion in gaming taxes for the first nine months of FY2023. The figure is a 10% increase compared to taxes in Q3 2022.
Americans boosted the tax revenue by wagering $23 billion on sports throughout Q3 2023.
"With three quarters of the year complete, the commercial gaming industry is on track to provide a record level of tax support for state and local governments," read a release from the American Gaming Association.